Calculator
Income Tax Calculator FY 2025-26
Compare your tax liability under the old and new regimes side-by-side and pick the cheaper one.
Employment
Old-regime deductions
New regime wins
Saves ₹67,860
versus the other regime, including 4% cess
New Regime
₹97,500
- Taxable: ₹14,25,000
- Slab: ₹93,750
- Rebate: ₹0
- Cess: ₹3,750
Old Regime
₹1,65,360
- Taxable: ₹11,55,000
- Slab: ₹1,59,000
- Rebate: ₹0
- Cess: ₹6,360
New regime wins by
₹67,860
Frequently asked questions
The new regime (with rebate up to ₹12 lakh income) is better for most salaried taxpayers without significant deductions. The old regime wins only if your aggregate deductions (80C + 80D + HRA + home loan interest + standard deduction) exceed roughly ₹4–₹5 lakh, depending on income. This calculator shows both side-by-side so you can pick the cheaper one.
New regime slabs: 0–4L: 0%, 4–8L: 5%, 8–12L: 10%, 12–16L: 15%, 16–20L: 20%, 20–24L: 25%, above 24L: 30%. Old regime: 0–2.5L: 0%, 2.5–5L: 5%, 5–10L: 20%, above 10L: 30%. Health & Education Cess of 4% applies on tax in both regimes.
Effectively yes for FY 2025-26 — the Section 87A rebate gives a full rebate of tax payable up to ₹12 lakh income (₹12.75 lakh for salaried after standard deduction). Marginal relief applies just above ₹12 lakh so the tax does not jump abruptly. Above ₹12 lakh, slab tax kicks in.
Limited: standard deduction of ₹75,000 (salaried/pensioners), employer NPS contribution under 80CCD(2), and Agniveer Corpus deduction. Most popular deductions — 80C, 80D, HRA, home loan interest under 24(b) — are NOT available in the new regime.
Standard deduction is ₹75,000 in the new regime and ₹50,000 in the old regime, for FY 2025-26. Pensioners are also eligible. Self-employed taxpayers do not get standard deduction in either regime.
Log in to incometax.gov.in with PAN/Aadhaar, choose ITR-1 (most salaried) or ITR-2/3 (others), pre-fill from AIS/Form 26AS, declare income and deductions, e-verify with Aadhaar OTP / net banking / DSC. The portal walks you through validation and generates the acknowledgement (ITR-V).
Old vs new — pick the cheaper one
Since FY 2023-24, the new regime is the default — but you can opt out and choose the old regime by declaring it to your employer or while filing ITR. The new regime won big in Budget 2025 with tax-free income up to ₹12 lakh through an enhanced 87A rebate. The old regime still pays off if you have large 80C, 80D, HRA, or home loan interest deductions.
What this calculator handles
We apply the FY 2025-26 slab tables, standard deduction (₹75K new / ₹50K old for salaried), 87A rebate (full up to ₹12L in new regime, up to ₹12,500 below ₹5L in old), marginal relief above ₹12 lakh in the new regime, and the 4% Health & Education Cess on the final tax. Deductions in the old regime are capped at the statutory limits.
Tips when picking a regime
- Run both numbers every year — the breakeven shifts as income and deductions change.
- Switching: salaried with no business income can switch every year via Form 10-IEA. Self-employed can switch only once.
- Don't forget surcharge — applies above ₹50 lakh income; this calculator does not include surcharge in the headline comparison.
Disclaimer: Calculation reflects FY 2025-26 (AY 2026-27) provisions. Surcharge above ₹50L income is not included and may further alter the comparison. Consult a CA for filing.
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